Just days ago, it appeared that a hundred low-wage workers at a Walmart-contracted warehouse in California would lose their jobs after publicly accusing their employer of shorting them on pay and forcing them to work in harsh conditions. But after the workers argued that the layoffs amounted to illegal retaliation, a state judge ordered this week that the contractors keep the mostly immigrant workers employed at the warehouse.

Questions:

What was the name of the company that Wal-Mart contracted with? What is a common name for this arrangement?

Why won’t Wal-Mart be included in the litigation regarding this situation?

Explain what type of journal entries Wal-Mart would make with respect to this arrangement.